Exclusive: Timothy Geithner to Stephanopoulos on Health Care

Dec. 22, 2009 -- Treasury Secretary Tim Geithner today disputed former Democratic leader Howard Dean's claim that the Senate health care bill is "a bonanza" for the health insurance industry.

"I think this is a very strong package of reforms that will be very good for the American economy and very good at trying to offer the prospect of improving care, expanding access, and lowering future cost," Geithner said in an exclusive interview with ABC News' George Stephanopoulos airing Wednesday on "Good Morning America."

"If you look at the best, nonpartisan, independent analysis of what this bill will do, it supports that proposition," Geithner said. "Lower costs over time, better care, broader access. It's a very strong bill."

The Treasury chief acknowledged that "a very important" factor in lowering costs over time is the Senate's tax on so-called "Cadillac" high-priced health insurance plans, a tax not in the reform bill that passed the House of Representatives.

Instead, the House bill has a surtax on the wealthiest Americans, but that surtax is not expected to get much support in the Senate. The two bills will have to be reconciled once the Senate has passed its version.

"There are differences in these bills remaining, which they're going to have to work through, and they're committed to work out those differences, but those differences are relatively modest still," said Geithner. "And I think the president is very confident that they're going to work those differences on terms that will, again, preserve this key outcome, which is significant changes in quality, access to care, and lower rate of growth in costs in the future."

Asked by Stephanopoulos if this meant preserving the tax on high-priced health insurance plans, Geithner replied, "Our view is that's important. It'll be very helpful. But there are a range of other things in both those bills that will also be important to bringing down costs in the future."